Kentucky Property and Casualty - Unit 3
Exam Q’s with Solutions
Fraternal Benefit Societies - -1.) Members only
2.) Not for Profit
3.) A lodge system
- Stock Company - -owned by stockholders
- Mutual Insurance Company - -owned by policyholders
- Risk Retention Group (RRG) - -Protects against product liability exposures
- Property Insurance - -Risks that we will suffer financial loss because of
something WE own is damaged or destroyed.
FIRST PARTY COVERAGE - WE OWN
- Casualty Insurance - -The risk that we will suffer financial loss as a result
of our actions TOWARDS OTHERS.
THIRD PARTY COVERAGE - Always to others, others belongings
- Personal/Commercial Lines - -Personal lines are property/casualty
coverage that protect an individual or family.
Commercial lines are coverages designed for business.
- Insurance Marketing Systems - -Exclusive Agency System - insurance
company contracts with agencies, which are independent businesses.
Direct Writer System - Insurance companies agents are actually employees.
Paid by commission
Direct Response System - No agents, companies sell over the phone
Independent Agency System - agencies are independent contractors with
several different companies to represent and sell insurance.
- Solicitor - -Like an agent, a solicitor sells insurance and may collect
premiums. They CANNOT issue or countersign policies.
- Consultant - -One who gives professional or technical advice for a fee over
various insurance policies. They DON'T sell insurance, they sell advice.
Exam Q’s with Solutions
Fraternal Benefit Societies - -1.) Members only
2.) Not for Profit
3.) A lodge system
- Stock Company - -owned by stockholders
- Mutual Insurance Company - -owned by policyholders
- Risk Retention Group (RRG) - -Protects against product liability exposures
- Property Insurance - -Risks that we will suffer financial loss because of
something WE own is damaged or destroyed.
FIRST PARTY COVERAGE - WE OWN
- Casualty Insurance - -The risk that we will suffer financial loss as a result
of our actions TOWARDS OTHERS.
THIRD PARTY COVERAGE - Always to others, others belongings
- Personal/Commercial Lines - -Personal lines are property/casualty
coverage that protect an individual or family.
Commercial lines are coverages designed for business.
- Insurance Marketing Systems - -Exclusive Agency System - insurance
company contracts with agencies, which are independent businesses.
Direct Writer System - Insurance companies agents are actually employees.
Paid by commission
Direct Response System - No agents, companies sell over the phone
Independent Agency System - agencies are independent contractors with
several different companies to represent and sell insurance.
- Solicitor - -Like an agent, a solicitor sells insurance and may collect
premiums. They CANNOT issue or countersign policies.
- Consultant - -One who gives professional or technical advice for a fee over
various insurance policies. They DON'T sell insurance, they sell advice.
